Alton Iron & Metal Co. v. Wabash Railway Co.

235 Ill. App. 151, 1924 Ill. App. LEXIS 123
CourtAppellate Court of Illinois
DecidedDecember 16, 1924
DocketGen. No. 29,226
StatusPublished

This text of 235 Ill. App. 151 (Alton Iron & Metal Co. v. Wabash Railway Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alton Iron & Metal Co. v. Wabash Railway Co., 235 Ill. App. 151, 1924 Ill. App. LEXIS 123 (Ill. Ct. App. 1924).

Opinion

Mr. Presiding Justice Fitch

delivered the opinion of the court.

Plaintiff, as the holder for value of two negotiable bills of lading covering a shipment by rail from Ray-ville, Louisiana, to Chicago, of approximately 74 tons of scrap iron, recovered a judgment against defendant, the terminal carrier, for $151.53, representing the value of nearly 8 tons of scrap iron which were missing from the shipment when it was delivered to the plaintiff in Chicago. Defendant appeals.

The trial was before the court without a jury. The plaintiff’s evidence consisted of the two bills of lading, one for each carload, issued by the receiving carrier in Louisiana, for transportation to the order of the shipper at Chicago, evidence tending to prove that plaintiff purchased the shipment in Chicago upon the basis of the weights stated in the bills of lading and paid to defendant the freight charges over the whole route on the same basis, evidence showing that the quantity of scrap iron in the cars when delivered by defendant to plaintiff weighed about 8 tons less than the quantity specified in the bills of lading, and evidence showing that the value per ton of scrap iron at that time in Chicago was $19. Defendant did not dispute any of this evidence, but introduced evidence on its part tending to prove that it received the two open “gondola” cars containing the shipment of scrap iron from another carrier at East St. Louis and transported the same safely and without loss over its line to Chicago, where it delivered the two cars and their contents to the plaintiff in the same condition as when it received the same from the preceding carrier. The natural inference to be drawn from defendant’s evidence — which was undisputed — is that defendant never received the quantity of iron specified in the bills of lading, and that the loss occurred on the line of some preceding carrier.

Upon these facts, it is contended by defendant’s counsel that defendant is not liable for the value of the missing quantity of scrap iron because, it is said, the common-law liability of the terminal carrier in an interstate shipment of goods is for its own negligence only, and such liability was not changed or affected by .the Carmack Amendment to section 20 of the Interstate Commerce Act, that there is no proof that plaintiff’s loss was due to any negligence on defendant’s part, but, on the contrary, the proof shows that such loss was not caused by any negligence of defendant. To this contention plaintiff’s counsel reply by saying that defendant is an insurer and is estopped from denying that it received the quantity of iron specified in the bills of lading, and therefore is liable for the value of so much of the stipulated quantity of iron as it failed to deliver to the plaintiff who purchased the same in good faith upon the strength of the statements contained in the bills of lading.

As the shipment in question was an interstate shipment and the bills of lading were issued pursuant to the federal statute, the rights and liabilities of the parties must be determined by reference to federal statutes and the decisions of federal courts. (Adams Exp. Co. v. Croninger, 226 U. S. 491, 507; Southern Ry. Co. v. Prescott, 240 U. S. 632, 636.)

Prior to the enactment of the Carmack Amendment to section 20 of the Interstate Commerce Act, the rule recognized in the federal courts was that each carrier in an interstate shipment of goods, in the absence of a special contract to the contrary, was only bound to safely carry the goods over its own line and safely deliver them to the succeeding carrier. (Michigan Cent. R. Co. v. Mineral Springs Mfg. Co., 16 Wall. (U. S.) 318; Myrick v. Michigan Cent. R. Co., 107 U. S. 102, 107.) If such carrier was the last or terminal carrier, its duty was to safely carry the goods over its own line and deliver them to the consignee at the agreed destination. (Southern Ry. Co. v. Prescott, supra.) By the Carmack Amendment this rule was modified to the extent of requiring the first or receiving carrier in an interstate shipment of goods to issue a receipt or bill of lading therefor and making it “liable to the lawful holder thereof for any loss, damage or injury to such property caused by it or by any common carrier * * * to which such property may be delivered.” In Atlantic Coast Line R. Co. v. Riverside Mills, 219 U. S. 186, it was held that this amendment imposes upon the first carrier which receives property in one State for transportation to a point in another State “the obligation of through transportation, with carrier liability throughout.” In Georgia, Fl. & Ala. Ry. Co. v. Blish Milling Co., 241 U. S. 190, 194, it was further held that: “The connecting carrier is not relieved from liability by the Carmack Amendment but the bill of lading required to be issued by the initial carrier upon an interstate shipment governs the entire transportation and thus fixes the obligations of all participating carriers to the extent that the terms of the bill of lading are applicable and valid,” that is, the connecting or terminal carrier “takes the goods under the bill of lading issued by the initial carrier” and the obligations of the connecting and terminal carriers “are measured by the terms” of such bill of lading. (Id., p. 196.) In Pennington v. Grand Trunk Western R. Co., 277 Ill. 39, it was said that the effect of the holding in the Blish Milling case, supra, is “that if in such a shipment a connecting carrier is sued, the rights and remedy of the shipper are to be determined under the federal laws existing prior to the enactment of the Carmack amendment, but the bill of lading issued by the initial carrier is to be considered, under the provisions of the Carmack Amendment, as the bill of lading of the connecting carrier, and therefore binding in all of its provisions that are valid and applicable to that suit.” (See also, Gallagher v. Grand Trunk Western Ry. Co., 207 Ill. App. 316.)

Section 22 of the federal Bills of Lading Act (Act of August 29, 1916, 39 Stat. L.

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Related

Myrick v. Michigan Central Railroad
107 U.S. 102 (Supreme Court, 1883)
Atlantic Coast Line Railroad v. Riverside Mills
219 U.S. 186 (Supreme Court, 1911)
Adams Express Company v. Croninger
226 U.S. 491 (Supreme Court, 1912)
Southern Railway Co. v. Prescott
240 U.S. 632 (Supreme Court, 1916)
Pennington v. Grand Trunk Western Railway Co.
115 N.E. 170 (Illinois Supreme Court, 1917)
American Hide & Leather Co. v. Southern Railway Co.
142 N.E. 200 (Illinois Supreme Court, 1923)
Tibbits & Son v. Rock Island & Peoria Ry. Co.
49 Ill. App. 567 (Appellate Court of Illinois, 1893)
Brown v. Missouri, Kansas & Texas Railway Co.
112 P. 147 (Supreme Court of Kansas, 1910)
Gallagher v. Grand Trunk Western Railway Co.
207 Ill. App. 316 (Appellate Court of Illinois, 1917)

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235 Ill. App. 151, 1924 Ill. App. LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alton-iron-metal-co-v-wabash-railway-co-illappct-1924.